Pumping the brakes

Hey there, time traveller!
This article was published 11/05/2020 (2119 days ago), so information in it may no longer be current.

The COVID-19 pandemic “put the brakes” on Winnipeg’s housing market in April, reducing both the number of sales and listings, according to the latest report issued by Winnipeg Realtors.

“Multiple Listing Service sales of 851 were down 30 per cent while the 1,568 new listings entered on the market in April decreased 42 per cent in comparison to April 2019,” said the report released last week.

While spring typically kicks off property sales for the year, the pandemic made sellers and buyers more reserved in their real estate decisions, but the market still remains healthy.

Despite the decrease in sales for April, year-to-date sales of 3,511 for all property types are just two per cent behind the same period in 2019 and three per cent down from the five year average.

Catherine Schellenberg, president of Winnipeg Realtors, said the current government-directed health guidelines have influenced the real estate market.

“To be expected, the local real estate market felt the impact of government stay at home measures to put the economy on hold to protect Manitobans’ health and well-being,” said Schellenberg.

“These measures have been well heeded by everyone to the extent that we can now start to reopen the economy. Realtors are adjusting their practices to ensure transactions are safe.”

Winnipeg Realtors spokesperson Peter Squire said with the measures slowly lifting, realtors have been challenged to find ways to ensure a safe experience for sellers, buyers, and agents.

These additional measures include conducting virtual home viewings instead of open houses, collecting digital signatures for paperwork and ensuring in-person tours are done in small groups. These new measures were put in place after open house showings were suspended during the virus’s initial outbreak.

“We’re really just starting out. We felt to take preponderance of good caution we needed to suspend holding open houses and I think it was definitely a good move but now we’ve felt with some of the recovery that’s commenced in May and hopefully will continue as we go forward with the success Manitoba’s having in controlling any new cases,” said Squire.

Condominium sales specifically were influenced by the new health measures, said the report. Although condo sales decreased by 53 per cent in April, one sale set a new record price for condominiums. The $1.79 million transaction was for a luxury condominium in Winnipeg, but nearly 80 per cent of condo sales ranged from $100,000 to $299,000.

Although sales of single-attached homes were down less than five per cent, sales of mobile homes increased by 400 per cent.

As many have felt the financial impact of the pandemic, Squire said it’s possible more potential buyers will consider downsizing or investing in more affordable homes.

Residential-detached homes, which make up 71 per cent of all MLS sales, were down in sales by 32 per cent compared to last year, but 20 per cent of the sales went for above list price. In April, 72 per cent of residential-detached properties ranged from $200,000 to $449,000 in sale price.

Squire said that going into the pandemic, the real estate market was performing very well.

“We were in good shape in terms of supply and we still expect a number of listings coming. April is really listing season and obviously we didn’t see the listings that we would normally get, and we may not see that even in May,” said Squire, adding the market will look more familiar in terms of sales later in the year.

He predicts the housing market will make its biggest comeback in the third and fourth quarter, especially after people have spent many hours indoors, adhering to public health measures.

“People certainly have been given a lot of time to re-evaluate their home because they haven’t been going out…Whether it was what people were planning to do, or weren’t quite planning but now thinking, ‘you know what, I would prefer a distinct space for an office or more room’, so it will be interesting,” said Squire.

Winnipeg Realtors represents over 2,000 realtors and industry related professions in Winnipeg and the surrounding areas.

nadya.pankiw@freepress.mb.ca